GDP excludes most items that are produced and sold illegally and most items that are produced and consumed at home because
A)the quality of these items is not high enough to contribute value to GDP.
B)measuring them is so difficult.
C)the government wants to discourage the production and consumption of these items.
D)these items are not reported on income tax forms.

Question

Quizplus · Accepted Answer

GDP is calculated based on monetary transactions within the formal economy, and it is difficult to accurately measure the value of goods and services that are produced and consumed informally or illegally. These activities often go unreported and lack reliable data, making it difficult to incorporate them into the calculation of GDP.

GDP Excludes Most Items That Are Produced and Sold Illegally